Safe as houses: Strong residential housing price growth has supported the industry

The Real Estate Services industry has benefited from booms in the residential and commercial property markets over the past five years. Rising property prices, increasing rents and strong demand from potential buyers and tenants has contributed to the industry’s strong performance. This is because real estate agent income is typically calculated as a share of a property’s sale price or rental income. Industry revenue is forecast to rise at an annualised 6.1% over the five years through 2017-18, to $4.5 billion. This includes forecast industry revenue growth of 5.3% during 2017-18. Falling housing loan rates are likely to improve buyer confidence in repaying loans and are expected to contribute to price growth during the year...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 13-18
6.1%
Forecast Growth 18-23
Profit
Employment
18,574
Businesses
12,371
Market Share of Companies

Industry Threats & Opportunities

  • Increasing apartment sales are likely to constrain property price growth over the next five years
  • Industry Report - Industry Key Buyers Chapter

    Market share concentration in the industry is low, with the four largest companies expected to account for less than 20% of industry revenue. The industry is highly fragmented, with the industry's largest operator, Harcourts International, accounting for just over 8.0% of industry revenue. Achieving significant market share in the industry is difficult due to the localised demand for industry services. Consumers and businesses generally seek firms that are based near the property to be sold or leased, and that have a good knowledge of the local market. As a result, while market share concentration can be high in a specific area, it is difficult for even large chains to capture significant market share across New Zealand. The...purchase to read more.

    Additional Insights for the Real Estate Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Real Estate Services Industry are

  • Membership in a franchise group
  • Market research and understanding
  • Access to a skilled workforce
  • IBISWorld analysts also discuss how external factors such as Mortgage affordability and Number of housing transfers in the Real Estate Services industry impact industry performance..

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    What's in this report

    What is the Real Estate Services in New Zealand Industry?

    Industry operators are mainly engaged in valuing, purchasing, selling, managing or renting real estate on behalf of others.

    Industry Products
  • Property sales
  • Property leasing
  • Property management
  • Other services
  • Industry Activities
  • Real estate brokering services
  • Real estate agency services
  • Real estate auctioning services
  • Property management services
  • Property rental agency services
  • Real estate valuation services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Mortgage affordability
  • Number of housing transfers
  • Residential housing loan rates
  • Residential housing prices

  • Current Performance
  • Residential price growth
  • Lending restrictions
  • Commercial property
  • Profit and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Cooling residential market
  • Commercial concerns
  • Table: Real Estate Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Real Estate Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Funds Management and Other Investment Services in New Zealand
  • Commercial Property Operators in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Architectural and Design Services in New Zealand
  • Commercial Property Operators in New Zealand
  • Wireless Telecommunications Carriers in New Zealand

  • Products & Services
  • Property sales
  • Property leasing
  • Property management
  • Other services
  • Chart: Real Estate Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Household owner-occupiers
  • Property investors
  • Commercial businesses
  • Chart: Major Market Segmentation for the Real Estate Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Real Estate Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Services Industry

  • Industry Globalization
    Harcourts International Limited,
  • Table: Harcourts International Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Real Estate Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Loan-To-Value Ratio (Lvr)
  • The value of a loan to the value of a property. A lower loan-to-value ratio is typically indicative of a higher deposit and therefore lower risk to lenders.
  • Owner Occupiers
  • Property owners that also use the property, typically home owners that purchase a residential property to live in.
  • Vacancy Rate
  • A ratio that indicates how 'full' available property is, typically used for commercial property. A low vacancy rate indicates strong demand for property.
  • What Our Customers Say

    Why buy this report?

    The Real Estate Services in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Real Estate Services in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Real Estate Services in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Real Estate Services in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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